NATIONAL OPEN

UNIVERSITY
ASSIGNMENT

BY:

MERCY JOHNSON

TOPIC:

BOTTLE WATER BUSINESS PLAN

MATRIC NUMBER: NOU191025999

CENTER: WUSE 2 STUDY CENTER

COURSE CODE: GST 302

ZONE: NORTH CENTRAL

FACULTY: MASS COMMUNICATION

DEPARTMENT: SOCIAL SCIENCE

FACULTY: MASS COMMUNICATION
MAY 2023

TABLE OF CONTENTS

INDUSTRY

OVERVIEW………………………………………………………………PG 1

EXECUTIVE

SUMMARY……………………………………………………………..PG 2

OUR PRODUCTS AND

SERVICES………………………………………………. PG 3

OUR MISSION AND VISION

STATEMENT…………………………………. PG 4

JOB ROLES AND

RESPONSIBILITIES……………………………………….. PG 5

SWOT ANALYSIS.....

………………………………………………………………….. PG 6

MARKET

ANALYSIS............................................................................. PG 7

OUR TARGET

MARKET....................................................................... PG 8
SALES AND MARKETING

STRATEGY………………………………………... PG 9

SALES

FORECAST................................................................................ PG

10

PUBLICITY AND ADVERTISING

STRATEGY……………………………….PG 11

OUR PRICING

STRATEGY………………………………………………………….PG 12

STARTUP EXPENDITURE (BUDGET)

…………………………………………PG 13

SUSTAINABILITY AND EXPANSION

STRATEGY………………………. .PG 14
1. INDUSTRY OVERVIEW

Bottled water is one commodity that is consumed in all parts of the world and of
course those that are in the business of producing bottled water are known to
generate sales year in year out if the business is well-managed. As a matter of
fact, economic downturn hardly affects the consumption of bottled water simple
because it is a commodity that is as important as the air we breathe in.

Production companies in the bottled water industry basically purify and bottle
water into plastic and glass bottles for consumption. The bottled water are
properly capped and labeled accordingly before being sold to the general public.
Companies in this industry usually have an assortment of water offerings, such as
spring water, mineral water, sparkling water and flavored water in a range of sizes
and prizes.

Players in this industry are also involved in the manufacturing of ice

manufacturing. It is common to find big corporations who are into production of
soft drinks and food and beverages engage in the production of bottled water.

Research conducted by IBIS World shows that in the United States of America, the
level of concentration in the Bottled Water Production industry is modest, as the
top four players are expected to generate 65.5 percent of revenue. Given the
heavy bulk weight of industry products and the relatively low value per unit sold,
bottled water production is generally taken on by large companies with major
economies of scale and heavy investments in transportation, While the majority
of bottled water production is performed as one of many activities within the
corporate portfolios of international food and beverage companies, the remaining
portion of the industry's production is performed through small-sized local
players.

The Bottled Water Production industry is a thriving sector of the economy of the
Nigeria and they generates a whooping sum of well over N5 Billion annually from
more than 565 registered and licensed bottle water production companies
scattered all around the Nigeria.
 The industry is responsible for the employment of well over 14,360 people.
Experts project the bottle water production industry to grow at a 4.0 percent
annual rate. The Coca Cola Company, Nestle and Pepsi Co are the world leaders in
the bottled water

Industry; they have the lion market share in Nigeria and in most countries of the
world. Despite the fact that there are big corporations who are into the
production of bottled water, the fact remains that starting a small scale bottled
water production business has minimal barriers to entry, with low start-up
capital. Most players in the bottled water production industry are small- to
medium-size establishments that cater to the local community.

With this kind of business, if you want to start on a small scale, you can choose to
start servicing your local community. All you would need is contacts, packaging
networking and good marketing and customer service skills. However, if you
intend starting it on a large scale, then you should consider spreading beyond
your local community to state level and even national level.

Over and above, the bottled water production industry is a profitable industry and
it is open for any aspiring entrepreneur to come in and establish his or her
business; you can chose to start on a small scale servicing a community or you can
chose to start on a large scale with several outlets in key cities all around the
Nigeria.

2. EXECUTIVE SUMMARY

MJ’s Bottled Water Production Company is a licensed and standard bottled water
production company that will be located in an industrial area in Area 3, Gark,
Abuja. We have been able to secure a long term lease for a facility in a strategic
location with an option of a long term renewal on an agreed terms and conditions
that is favorable to us.

We are in the bottled water production business to engage in purifying and

bottling water, purifying and bottling carbonated water, labeling bottled water
products, promoting bottled water brands, production bottled still water,
production of bottled flavored water, production of bottled sparkling water and
manufacturing ice et al.

We are also in business to make profits at the same to give our customers value
for their money; we want to give people and businesses who patronize our
bottled water the opportunity to be part of the success story of MJ’s Bottled
Water Production Company.

We are aware that there are several big scale and small scale bottled water
production companies scattered all around the Abuja whose products can be
found in every nooks and crannies of Nigeria

This is why we spent time and resources to conduct our feasibility studies and
market survey so as to enable us locate the business in an area that will support
the growth of the business and also for us to be able offer much more than our
competitors will be offering.

We ensured that our facility is easy to locate and we have mapped out plans to
develop a wide distribution network for wholesalers all around Garki and it s
environs and the Nigeria,

Much more than producing healthy, portable and well packaged bottled water,
our customer care is going to be second to none. We know that our customers
are the reason why we are in business which is why we will go the extra mile to
get them satisfied when they visit purchase any of our bottled water and also to
become our loyal customers and ambassadors.

MJ’s Bottled Water Production Company will ensure that all our customers
(wholesale distributors) are given first class treatment whenever they visit our
Depot/ Plant. We have a CRM software that will enable us manage a one on one
relationship with our customers (wholesale distributors) no matter how large the
numbers of our customer base may grow to. We will ensure that we get our
customers involved when making some business decisions that will directly or
indirectly affect them.
 MJ’s Bottled Water Production Company is family business that will be owned by
Mark Harrison Clay and Family. Mark Harrison who is the Chief Executive Officer
of the Company is Graduate of Micro Biology (B.Sc.) and he holds a Master's
Degree in

BUSINESS MANAGEMENT (MBA)

He has well over 15 years of experience working in related industry as a senior

manager prior to starting MJ’s Bottled Water Production Company. He will be
working with a team of professionals to build the business and grow it to enviably
height.

3. OUR PRODUCTS AND SERVICES

MJ’s Bottled Water Production Company is going to operate a standard and

licensed bottled water production company whose products will not only be sold
in Garki and its environs but also throughout the Nigeria. We are in the bottled
water production business to make profits and also to give our customers value
for their money, These are some of the products that we will be offering:

 Purifying and bottling water

 Purifying and bottling carbonated water
 Labeling bottled water products
 Promoting bottled water brands
 Manufacturing ice
 Still water
 Flavored water
 Sparkling water

4. OUR MISSION AND VISION STATEMENT

Our vision is to establish standard bottled water Production Company whose

products will be not only be sold in Garki and its environs, but also throughout the
Nigeria, and in other parts of the world.
 Our mission is to establish a standard and world class bottled water Production
Company that in our own capacity will favorably compete with leaders in the
industry such as Nestle Foods, The Coca Cola Company, and Pepsi Co et al.

We want to build a bottled water production business that will be listed amongst
the top 20 bottled water brands in Nigeria Our Business Structure

MJ’s Bottled Water Production Company is a business that is established with the
aim of competing favorably with other leading bottled water brands in the
industry. This is why we will ensure that we put the right structure in place that
will support the kind of growth that we have in mind while setting up the
business.

We will ensure that we only hire people that are qualified, honest, hardworking
customer centric and are ready to work to help us build a prosperous business
that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our

senior management staff and it will be based on their performance for a period of
five years or more depending how fast we meet our set target. In view of that, we
have decided to hire qualified and competent hands to occupy the following
positions;

 Chief Executive Officer (Owner)

 Plant Manager Human Resources and Admin Manager
 Merchandize Manager
 Sales and Marketing Manager Information Technologist
 Accountants/Cashiers
 Cleaners

5. JOB ROLES AND RESPONSIBILITIES

Chief Executive Officer - CEO (Owner): Deborah Yemi, Bello

 Increases management's effectiveness by recruiting, selecting, orienting,

training, coaching, counseling and disciplining managers; communicating
  Transport finished goods and raw materials over land and from
manufacturing plants or retail and distribution centers
 Inspects vehicles for mechanical items and safety issues and perform
preventative maintenance
 Complies with truck driving rules and regulations (size, weight, route
designations, parking, break periods etc.) as well as with company policies
and procedures
 Collects and verify delivery instructions
 Reports defects, accidents or violations

6. SWOT ANALYSIS

We know that if a proper SWOT analysis is conducted for our business, we will be
able to position our business to maximize our strength, leverage on the
opportunities that will be available to us, mitigate our risks and be welled
equipped to confront our threats.

MJ’s Bottled Water Production Company employed the services of an expert HR

and Business Analyst with bias in start-up business to help us conduct a thorough
SWOT analysis and to help us create a Business model that will help us achieve
our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Debby' s Bottled
Water Production Company:

 Strength:

Part of what is going to count as positives for MJ’s Bottled Water Production
Company is the vast experience of our management team, we have people on
board who are highly experienced and understands how to grow business from
the scratch to becoming a national phenomenon.

So also, the wide varieties of bottled water in terms of flavor, packaging and size
et al that we produce, our large national distribution network and of course our
excellent customer service culture will definitely count as a strong strength for
the business.
  Weakness:

A major weakness that may count against us is the fact that we are a new bottled
water production company and we don't have the financial capacity to engage in
the kind of publicity that we intend giving the business especially when big names
like Nestle Foods, The Coca Cola Company and Pepsi Co et al are already
determining the direction of the market both in Nigeria and in the global market.

A major weakness that may count against us in the fact that we are a new bottled
water production company and we don’t have the financial capacity to engage in
the kind of publicity that we intend giving the business especially when big names
like Nestle Foods, The Coca Cola Company and Pepsi Co et al are already
determining the direction of the market both in the United States and in the
global market.

 Opportunities:

The opportunities for bottled water production companies with a wide range of
bottled water products are enormous. This is due to the fact that almost all
Americans and people from all over the world can afford bottled water and they
drink it regularly. As a result of that, we were able to conduct a thorough market
survey and feasibility studies so as to position our business to take advantage of
the existing market for bottled water and also to create our own new market. We
know that it is going to requires hard work, and we are determining to achieve it.

 Threat:

We are quite aware that just like any other business, one of the major threats
that we are likely going to face is economic downturn and unfavorable
government policies. It is a fact that economic downturn affects purchasing
power. Another threat that may likely confront us is the arrival of a new bottled
water production company in same location where ours is located, we are quite
aware that just like any other business, one of the major threats that we are likely
going to face is economic downturn and unfavorable government policies. It is a
fact that economic downturn affects purchasing power, Another threat that may
 likely confront us is the arrival of a new bottled water production company in
same location where ours is located,

7. MARKET ANALYSIS
 Market Trends

If you are conversant with the trend in the bottled water production industry, you
will quite agree that despite the fact that there are competitions in different
stages of the industry. That is competitions amongst bigger corporations such as
Pepsi Co, The Coca Cola Company and Nestle et al and also competitions amongst
smaller and medium scale bottled water production companies.

Most bottled water company are leveraging on creativity in terms of packaging

and marketing to continue to stay afloat in the industry. One creativity approach
that is common is ensuring that their bottled water conforms to the appropriate
PH - level.

As a matter of fact it is common to find bottled water production companies

especially medium scale and small scale bottled water companies specially
labeling their bottled water for specific occasions to meet the demand of their
clients. For example, a client that is celebrating his or her birthday may strike an
agreement with a battled water company to specially label the bottled water that
will be served in the occasion to conform with the occasion.

Lastly, another trend in the bottled water production industry is the adoption of
eco friendly approach towards the production and packaging of bottled water. As
a matter of fact, the industry's adoption of eco-friendly practices will likely
persuade environmentally conscious consumers to buy its products, while
increasing operators' efficiency.

8. OUR TARGET MARKET

When it comes to selling bottled water, there is indeed a wide range of available
customers, In essence, our target market can't be restricted to just a group of
people, but all those who resides in our target market locations. In view of that,
we have conducted our market research and we have ideas of what our target
market would be expecting from us. We are in business to engage in wholesale
distribution and to retail bottled water to the following groups of people:

 Hotels
 Restaurants and Canteens
 Event Planners, Parties and Corporate Functions
 Corporate Executives
 Government Officials
 Business People Celebrities
 Military Men and Women
 Sports Men and Women
 Students
 Tourists
 Everybody in our target market location

OUR COMPETITIVE ADVANTAGE

A close study of the bottled water production industry reveals that the market has
become much more intensely competitive over the last decade. As a matter of
fact, you have to be highly creative customer centric and proactive if you must
survive in this industry.

We are aware of the stiffer competition and we are well prepared to compete
favorably with other bottled water production companies in Garki and its environs
and throughout the United States and Canada.

MJ’s Bottled Water Production Company is launching a standard bottled water

brand that will indeed become the preferred choice of residence of Garki and its
environs and every city where our bottled water will be retailed. Part of what is
going to count as competitive advantage for MJ’s Bottled Water

Production Company is the vast experience of our management team, we have

people on board who are highly experienced and understands how to grow
business from the scratch to becoming a national phenomenon.
 So also, the wide varieties of bottled water in terms of flavor, packaging and size
et al that we produce, our large national distribution network and of course our
excellent customer service culture will definitely count as a strong strength for
the business.

Lastly, our employees will be well taken care of, and their welfare package will be
among the best within our category (startups bottled water companies) in the
bottled water industry, meaning that they will be more than willing to build the
business with us and help deliver our set goals and achieve all our aims and
objectives. We will also give good working conditions and commissions to
freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

 Sources of Income

Debby' s Bottled Water Production Company is established with the aim of

maximizing profits in the bottled water production industry in both the Nigeria
and we are going to go all the way to ensure that we do all it takes to sell a wide
range of bottled water products to a wide range of customers. MJ’s Bottled Water
Production Company will generate income by selling the following products;

 Still water
 Flavored water
 Sparkling water
 Purifying and bottling water
 Purifying and bottling carbonated water
 Labeling bottled water products
 Promoting bottled water brands
 Manufacturing ice

10. SALES FORECAST

One thing is certain when it comes to bottled water production business, if your
bottled water are well-packaged and branded and if your production plant is
 centrally positioned and easily accessible, you will always attract customers cum
sales and that will sure translate to increase in revenue generation for the
business.

We are well positioned to take on the available market in Garki and it's environs
and every city where our bottled water will be sold and we are quite optimistic
that we will meet our set target of generating income/profits from the first six
month of products

1. Advertise our products in community based newspapers, local TV and radio

stations
2. List our business and products on yellow pages ads (local directories) 6.
Leverage on the internet to promote our bottled water brands
3. Engage in direct marketing and sales
4. Encourage the use of Word of mouth marketing (referrals)
11. PUBLICITY AND ADVERTISING STRATEGY

Despite the fact that our bottled water production plant is a standard one with a
wide range of bottled water products that can favorably compete with other
leading brands, we will still go ahead to intensity publicity for all our products and
brand. We are going to explore all available means to promote MJ’s Bottled
Water Production Company.

Debby' s Bottled Water Production Company has a long term plan of distributing
our bottled water in various locations all around the Nigeria which is why we will
deliberately build our brand to be well accepted in FCT, Abuja before venturing
out.

As a matter of fact, our publicity and advertising strategy is not solely for selling
our products but to also effectively communicate our brand. Here are the
platforms we intend leveraging on to promote and advertise MJ’s Bottled Water
Production Company:

 Place adverts on both print (community based newspapers and magazines)

and electronic media platforms
 Sponsor relevant community programs
  Leverage on the internet and social media platforms like; Instagram
Facebook, twitter, et al to promote our bottled water brand
 Install our Bill Boards on strategic locations all around major cities in Nigeria
 Engage in road show from time to time in targeted communities
 Distribute our fliers and handbills in target areas
 Position our Flexi Banners at strategic positions in the location where we
intend getting customers to start patronizing our products.
 Ensure that our bottled water is well branded and that all our staff
members wear our customized clothes, and all our official cars and
distribution vans are customized and well branded.
12. OUR PRICING STRATEGY

When it comes to pricing for products such as bottled watered, there are two
sides to the coin. We are aware of the pricing trend in the bottled water
production industry which is why we have decided to produce various sizes of
bottled water

In view of that, our prices will conform to what is obtainable in the industry but
will ensure that within the first 6 to 12 months our products are sold a little bit
below the average prices of various bottled water production brands in Nigeria.
We have put in place business strategies that will help us run on low profits for a
period of 6 months; it is a way of encouraging people to buy into our bottled
water brands.

Payment Options At MJ’s Bottled Water Production Company, our payment policy
is all inclusive because we are quite aware that different people prefer different
payment options as it suits them. Here are the payment options that will be
available in every of our outlets;

 Payment by cash
 Payment via Point of Sale (POS) Machine
 Payment via online bank transfer (online payment portal) Payment via
Mobile money
 Payment via check (for wholesale distributors)
 In view of the above, we have chosen banking platforms that will help us achieve
our payment plans without any itches.

13. STARTUP EXPENDITURE (BUDGET)

 The Total Fee for Registering the Business in FCT, Abuja - N50,000.
 Legal expenses for obtaining licenses and permits as well as the accounting
services (software, P.OS machines and other software) N80,300.
 Marketing promotion expenses for the grand opening of MJ’s Bottled
Water Production Company in the amount of N500,500 and as well as flyer
printing (20,000 flyers at 20 per copy) for the total amount of - N400,000. •
Cost for hiring Business Consultant - N250,00.
 Insurance (general liability, workers' compensation and property casualty)
coverage at a total premium N240,000.
 Cost for payment of rent for 12 month at №1.76 per square feet in the total
amount of N105,600.
 Cost for construction of a standard bottled water production plant -
N100,000.
 Other start-up expenses including stationery (N50,000) and phone and
utility deposits (N2,500)
 Operational cost for the first bills et al) N100,000 monies of employees,
payments of may, bottles and packaging materials these are the areas we
intend generating our start-up capital;
 Generate part of the start-up capital from personal savings and sell of
stocks
 Source for soft loans from family members and friends
 Apply for loan from my Bank
NB: We have been able to generate about N200000 (Personal savings
N15,000,000 and soft loan from family members N500,000) and we are at
the final stages of obtaining a loan facility at N3,000,000 from our bank. All
the papers and document have been signed and submitted, the loan has
been approved and any moment from now our account will be credited
with the amount.

14. SUSTAINABILITY AND EXPANSION STRATEGY

The future of a business lies in the numbers of loyal customers that they
have the capacity and competence of the employees, their investment
strategy and the business structure. If all of these factors are missing from a
business (company), then it won't be too long before the business close
shop.
One of our major goals of starting MJ’s Bottled Water Production Company
is to build a business that will survive off its own cash flow without the
need for injecting finance from external sources once the business is
officially running.
We know that one of the ways of gaining approval and winning customers
over is to retail our bottled water and other products a little bit cheaper
than what is obtainable in the market and we are well prepared to survive
on lower profit margin for a while.
Debby' s Bottled Water Production Company will make sure that the right
foundation, structures and processes are put in place to ensure that our
staff welfare are well taken of our company's corporate culture is designed
to drive our business to greater heights and training and re-training of our
workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all
our management staff and it will be based on their performance for a
period of three years or more. We know that if that is put in place, we will
be able to successfully hire and retain the best hands we can get in the
industry; they will be more committed to help us build the business of our
dreams.